Sterling soars to four-year high against euro

    Sterling has soared to a four-year high against the euro.

    The euro is now at its lowest point since November 2008, reports the Guardian , pushing up the exchange rate in favour of Brits. Last year, £1 could fetch sterling spenders €1.10. Now, that has risen to €1.27 as the eurozone crisis continues.

    As a result, Britons looking to go on holiday in Europe or buy property overseas are being advised to change currencies now.

    "The optimism we saw after the last summit has faded once again," commented Darragh Maher, foreign exchange stategist at HSBC. "We're back in a familiar environment. The pound has strengthened not because people are particularly loving sterling but because people are particularly hating the euro. For the currency markets, it's still this idea of being an ugly contest. Sterling has its flaws and vulnerabilities but at the end of the day it's not the euro. For now that's sufficient reason for it to outperform."

    For UK buyers look at Spanish property, sterling's strength could significantly offset other costs incurred by the government's recent decision to raise VAT from 18pc to 21pc.

     

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